JOHANNESBURG - PepsiCo's deal to acquire Pioneer Foods for nearly R25 billion on Wednesday was hailed as a massive boost for the economy, despite the perceived and actual political and socio-economic risks in the country.
This is according to Andrew Bahlmann, managing director of Deal Leaders Africa, a boutique mergers and acquisition advisory firm.
Last week, PepsiCo -- a wholly-owned subsidiary of the US multinational food, snack and beverage corporation -- gave notice of its firm intention to make an offer to acquire the issued ordinary shares of South African packaged goods company Pioneer Foods for U.S.$1.7 billion.
The PepsiCo offer will be made at a base price of R110 per Pioneer Foods ordinary share, with possible increases linked to dividends.
Bahlmann said that the growth opportunities afforded by Pioneer far outweigh the risk of investment.